Question
10. World Corp. is considering investing in a new project, code-named Cup, which has a 5-year life. Below are the expected cash flows from today
10. World Corp. is considering investing in a new project, code-named Cup, which has a 5-year life. Below are the expected cash flows from today through the next five years of the World Cup project (C0-C5).
| C0 | C1 | C2 | C3 | C4 | C5 |
| -12,000 | 3,000 | 3,000 | 6,000 | 8,000 | 12,000 |
a. What is the Payback Period for the World Cup project?
b. What is the IRR of the World Cup project?
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Introduction To Corporate Finance
Authors: William L. Megginson, M.D. Lucey Brian C., Scott J. Smart, Scott B. Smart, Bill Megginson
1st Edition
184480562X, 9781844805624
